E-commerce now accounts for 20% of total retail sales, generating about $6 trillion USD annually. But while the pandemic inspired more customers to adopt online shopping, it also changed customer expectations about convenience and personalization. Retailers who want to grow online sales and boost customer loyalty can exceed those expectations as a way to stand out as retail competition heats up.
The customer experience is the playing field where the winners will be decided. A January 2023 Zendesk customer experience trends report identified a shift in customer preferences toward immersive experiences. It was found that more than 60% of customers are excited about immersive experiences, with a desire for more convenience and greater personalization among the key drivers.
3D technology has a massive role to play in delivering the convenience and personalization customers demand while also helping retailers control costs. Here’s a look at three ways 3D vision technology, like augmented reality (AR), can drive sales, build loyalty, and help retailers operate more efficiently while delivering an immersive experience.
Create Fully Virtual Online Stores With AR
Most images on retail sites are two-dimensional, so the experience of shopping online isn’t much different than leafing through a printed catalog. AR is a gamechanger that lets retailers build a fully virtual online store. It’s a trend that’s catching on as major brands use 3D technologies to create immersive shopping experiences that customers can access through laptops or mobile devices.
Virtual online stores provide an experience that is closer to a traditional store visit without leaving home. This convenience also allows retailers to reach loyal customers who might otherwise be unable to attend a brand’s special event. For example, retailer J. Crew celebrated its 40th anniversary by creating a virtual beach house that customers can visit to view virtual merchandise presented in creative ways.
In addition to convenience, virtual stores powered by 3D technology can also offer personalization by allowing customers to choose an avatar that interacts with the virtual storefront and products.
Use AR to Get Product Return Costs Under Control
With the right marketing strategy, retailers can reach customers anywhere in the world with a digital platform. The downside is that when customers can’t try on items like clothing and shoes, they are more likely to return them. Returns are expensive for retailers and harmful to the environment due to reverse logistics emissions.
According to an Insider Intelligence report, returns accounted for 19.8% of e-commerce spending in 2019, before the pandemic. In 2022, return expenses were projected to spike to 26.5% — almost $280 billion USD. It’s a dilemma for retailers because customers expect free returns, and it’s a problem for consumers since higher return costs will ultimately be passed on to consumers as higher prices.
AR can help retailers control return costs by helping customers find the right fit the first time. Body scanning technology, such as one of our customers, Size Stream, can help customers get their precise measurements, and advanced AR features like personal avatars that are scaled using actual measurements can let customers try on clothes virtually and get a better feel for look and fit. This approach ticks the personalization box for the customer while improving convenience for both retailer and customer by reducing returns.
Put Products in the Room with AR
A customer may admire a sofa, wall hanging, cabinet, or other piece of home décor inside an in-store or online showroom, but that doesn’t necessarily mean they have confidence it will look great in their home. Using 3D vision systems, AR tools can provide that assurance by putting products in the room, complete with accurate dimensions, sizes, and other specifications.
IKEA was an early AR adopter; customers have been able to use the IKEA app to view the placement of items like chairs and tables inside their homes for several years. It’s a popular feature that other retailers are adopting to drive sales and provide the ultimate in personalization: a view of the product as it would appear in the customer’s own home before they make a purchase.
The potential applications are endless. Many online eyewear retailers have deployed AR to allow customers to virtually try on glasses, including Warby Parker and Zenni. Leading beauty brands let digital shoppers test makeup virtually using AR tools, including Maybelline, which offers a virtual beauty studio that lets shoppers try different shades, experiment with eyebrow shapes, and more.
AR for a Better Customer Experience
Customers are telling retailers what they want: immersive experiences that offer convenience and personalization across channels. Brands that deliver can gain a competitive edge, and the current consumer enthusiasm for immersive experiences is an opportunity for brands to set themselves apart.
3D technology, like AR-powered solutions, is a great way for retailers to provide the convenience and personalization customers crave while addressing the returns issue. With AR that lets customers visit a store without leaving home, get the right fit every time, and see products inside their homes before buying, retailers can deliver a memorable immersive experience, boosting sales and customer loyalty.
